Moody’s downgrades Bank of Ireland’s UK deposit division
Published 11/10/2011 | 12:58
Ratings agency Moody’s has downgraded the deposit rating of Bank of Ireland’s British division.
The move came on growing speculation that if the operations encountered problems, the Government there would not provide support.
The banks mortgage division there has is worth about €30bn and its large exposure to the UK, where property prices have also fallen, is perceived as a disadvantage.
Moody's said its decision to cut to Ba1/Not-Prime with a negative outlook from Baa3/Prime-3 follows is general cut in British banks ratings.
"Moody's has lowered to 0 from 2 the notches of systemic support it incorporates into BoI UK's long-term deposit rating," it said in a statement.
"We believe that there is an increased likelihood that the Irish government would provide support to BoI (UK) through BoI," Moody's said.